LTFRB-6 says consultations, route data not its mandate

By Rjay Zuriaga Castor

The Land Transportation Franchising and Regulatory Board Region 6 (LTFRB-6) clarified that it is not mandated to conduct consultations or determine route allocation factors such as ridership data and utilization rates when granting franchises.

“It has not been the task of this office to determine the factors affecting the determination of allocations, e.g., ridership data and utilization rates,” LTFRB-6 Director Richard Osmeña said.

He added that consulting with local governments and public land transport groups is “not a mandated process” before franchise approvals.

The clarification follows mounting concerns from the Iloilo City government and local taxi operators over the approval of 100 new “blue taxi” franchises from Davao.

Councilor Sedfrey Cabaluna previously wrote to LTFRB-6 requesting clarification on whether a feasibility study, ridership data, utilization rates, or consultation process supported the new franchise approvals.

LTFRB-6 data show there are currently 2,570 valid taxi franchises and 1,458 Transportation Network Vehicle Service (TNVS) franchises across Western Visayas.

Osmeña said requests for additional allocations for TNVS and taxi services in Iloilo City were initiated by local transport network companies and taxi operators.

“Yet, again, the approval of these requests is always left at the discretion of the LTFRB, upon evaluation and recommendation of its Franchise Planning and Monitoring Division,” he said.

The Association of Taxi Operators in Panay (ATOP) said the entry of new blue taxis could worsen the already declining dispatch rates among Iloilo taxi operators.

ATOP President Perfecto Yap said dispatching rates and passenger numbers have dropped significantly in recent months.

He noted that taxi dispatching rates averaged 90% to 100% in the past two years but started falling to about 70% by June and July this year.

“In other words, some units are no longer plying,” Yap said.

“We call it insufficient, and we observed that the remittance of our drivers has shortages or they cannot remit in full,” he added.

Yap said the number of active drivers has also dropped, with many opting to operate only on selected days.

He observed that the driver shortage has led to “pirating,” with some operators offering better pay or incentives to lure drivers away from competitors.

“This will hurt the industry,” Yap said.

“This will be bloody for the taxi operators,” he told Daily Guardian.

ATOP warned that the current situation could threaten the financial stability of taxi businesses, especially as about 70% to 80% of the city’s taxi units are brand new and still under loan amortization.

“If the situation will be compounded and the drivers cannot pay due to low income and the surging cost of the fuel, it would affect the capacity of the operators to pay their monthly amortization,” Yap said.

ATOP currently has 34 consolidated taxi operators in Iloilo City, but only 20 remain active.

Of the 3,030 registered taxi units in the city, only around 2,005 are operational, Yap added.

He warned that allowing additional blue taxis would not only intensify competition but also subject the new entrants to the same operational and financial challenges already burdening local operators.